While a lot of people believe buying a home is the American Dream, and a new report suggests that it may also be a slightly better choice for your wallet.
- ATTOM Data Solutions’ 2020 Rental Affordability Report finds that it’s more affordable to own a three-bedroom property than to rent in 455 out of 855 U.S. counties, or 53% of the country.
- The size of the market plays a big role though, with renting more affordable in more populous suburban or urban areas.
- In fact, it’s more affordable to rent a home in 94 out of 136 counties with at least 500,000 or more residents, which is about 69%.
- It’s also better to rent in 36 out of 43 counties with at least 1 million or more people, or 84%.
- Some of those one million plus areas include Los Angeles, Chicago, New York City, Las Vegas, San Francisco and Houston and Boston.
Other notes from the survey:
- In all 855 counties analyzed, it will take an average of 37.6% of a person’s wages to rent a three-bedroom property.
- The least affordable market to rent is Santa Cruz County, California (82.1% of wages).
- For counties with at least one million residents, Brooklyn, New York has the rent that consumes the highest percentage of average wages (65.3%).
- The most affordable rental market in the country is Roane County, Tennessee, just west of Knoxville, where it will only cost a person 20.1% of their wages.
- The most affordable county with a population of over one million is Allegheny County, a.k.a. Pittsburgh, Pennsylvania, where it will only cost a person 24.3% of their wages.
- Median home prices rose faster than average weekly wages in 567 of the 855 counties analyzed in the report (66.3%).
- Average weekly wages rose faster than median home prices in 288 counties (33.7%).
- Wages rose faster than average fair market rents in 484 counties (56.6%).
- Average rents rose faster than average wages in 371 counties, or (43.4%).